Industry news

Volkswagen has unveiled three new electrified concepts at the Shanghai auto show, including the brand’s first range-extender electric vehicle.Intended as a preview for VW’s future product plans in China, the three concept vehicles, which appear to be near production-spec, have been co-developed with the brand’s local partners SAIC Motor, FAW Group and Volkswagen Anhui.The concept range kicks off with the ID.ERA, a full-sized three-row SUV sporting the brand’s first range-extender platform. While specific powertrain details remain under wraps, Volkswagen says it can provide 300km of range in EV-only mode and deliver a comprehensive range of at least 1000km.As a smaller Jetta-sized sedan targeting younger buyers, the fully electric ID.EVO has been developed with high-performance 800-volt architecture that can support faster charging times and longer range than its 400-volt equivalents.And finally, the ID.AURA is a medium-sized electric SUV designed exclusively for the Chinese market. It utilises Volkswagen’s China-specific Compact Main Platform (CMP), with zonal architecture and AI integration. VW said the model has been developed for the “cost-conscious consumer”.The move represents Volkswagen’s desire to get back to competitiveness in China, where the once-dominant brand is losing ground to emerging domestic rivals such as BYD and Xiaomi.Volkswagen’s future product plans for the world’s largest car market consists of 30 new models by 2027, with a major emphasis on drastically cutting the time it takes to develop new products.The new approach, dubbed “China-speed”, will see VW aim to develop a new car in less than 34 months to keep apace with its Chinese rivals.In the pre-EV era, development of a car with a traditional internal combustion engine (ICE) could take up to five years, but new Chinese EV brands have shown they can cut that time to as little as 18 months.Nissan has similarly said it is looking to cut the time it takes to develop a new model to 37 months as it seeks to return to profitability.All research and development of the new VW models will take place at Volkswagen’s new facility in Hefei, China. It remains unclear whether any will be sold in overseas markets.

Chinese commercial vehicle brand LDV is being taken to court by Australia’s competition and consumer watchdog over claims its cars are not reliable or tough.The Australian Competition and Consumer Commission (ACCC) today issued a media release detailing its claims against LDV which is distributed in Australia through private importer, Ateco Automotive.The importer has responded, saying it has tried to work with the ACCC and that the legal actions are “disappointing”.The claims relate to the T60 pick-up (but not the electric eT60) and G10 mid-size delivery vans built in China.The ACCC says between April 2019 and November 2024, LDV made “misleading representations” to consumers about the two models, with the company claiming they were “durable and tough, and that they were suitable for use in, near, or on, a variety of environments and off-road terrains”.The ACCC alleges in its claim that the two models are prone to rust or corrosion within five years of the date of manufacture and that as a result, the T60 and G10 were “not durable and tough”.It’s alleged the models are more likely to rust when they are housed near or on particular terrains and environments.According to the ACCC, LDV advertised the G10 and T60 online, on television, radio and social media in environments like beaches, lakes, rivers, unsealed and gravel roads and terrain.The ACCC also alleges “false or misleading representations” by LDV in advertising a 10-year anti-corrosion warranty for the T60, given the ute did have a propensity to rust or corrode.Further, the ACCC alleges LDV was aware of the T60 and G10 rust and corrosion issues by April 2019 and that LDV’s representations of the models were false or misleading as the brand didn’t have a basis to make such representations.LDV received more than 5000 complaints from G10 and T60 customers about rust or corrosion between January 2018 and November 2024.ACCC Chair Gina Cass-Gottlieb said a new car is a “significant financial purchase” and buyers should expect the product to live up to its advertised promise.“We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains,” Cass-Gottlieb said.“As a result, we allege that LDV’s conduct is likely to have caused harm to affected consumers, including because the propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks.”In a statement, LDV Australia said it acknowledged the announcement by the ACCC.LDV Australia General Manager Dinesh Chinnappa said the company would defend itself against the allegations.“For 18 months LDV Australia has been engaged in good faith discussions with the Commission in an attempt to resolve its concerns, and to provide remedies to consumers. It is disappointing this process has ended in these legal proceedings.“LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court.”According to the ACCC, LDV has sold a combined total of 60,000 examples of the G10 and T60 in Australia between 2018 and 2024.The ACCC is seeking “penalties, declarations, consumer redress, costs and other orders”.

Production plans for Tesla’s low-cost Model Y have been delayed again, according to industry sources, with a start date now slated for as late as early 2026.According to Reuters, three sources with knowledge of the matter said production had been pushed back by at least a few months from Tesla’s most recently publicised production date of the first half of this year.The brand is now reportedly offering a range of revised targets from the third quarter to early next year. The reason for the delay is not clear.Two of the sources confirmed that Tesla is aiming to produce 250,000 of the cheaper Model Ys in the United States by next year. Production is also planned for Europe and China, the latter of which being where Australia-bound Teslas are built.Questions around plans for the affordable models, which will also eventually include a stripped-back Model 3, is set to be a key line of inquiry following Tesla’s first quarter earning results on Wednesday.Low-cost Teslas have long been anticipated by customers and investors alike, with plans dating back as far as 2020 when CEO Elon Musk first floated a price tag of $25,000 (A$40,000) for future budget models.The same price tag has since been floated for the incoming, fully-autonomous Cybercab, which is now also delayed.Reuters reported that the new stripped-back Model Y will cost 20 per cent less to produce than the current version, presumably by losing some standard features and carrying a smaller, short-range battery pack. Tesla has previously said a 53kWh unit would replace the current Model Y's 60kWh battery.An updated version of the current Model Y will land in Australian showrooms from next month with a starting price of $58,900 before on-road costs.Positive news couldn’t come any sooner for Tesla, whose stock has fallen by 44 per cent in the US off the back of Musk’s controversial role in the Trump Administration's Department of Government Efficiency (DOGE).Rising competition from Chinese EV brands, such as BYD, has also seen the brand’s small and aging line-up undercut in key overseas markets such as China, Europe and Australia, with Tesla recording its first-ever decline in annual deliveries in the fourth quarter of last year.U.S. President Donald Trump’s huge 145 per cent tariffs on Chinese imports, including vehicle components, are also set to hit a quarter of vehicles Tesla produces in the US, according to Fortune.In Australia, Tesla’s sales to March 2025 were down by nearly 60 per cent compared to the same period last year, with sales of the brand’s best-selling model in Australia (and globally), the Model Y, falling by 54.4 per cent.BYD, meanwhile, has seen its sales in Australia grow by 95.6 per cent over the same period, though largely off the back of its plug-in hybrid Shark 6 ute.Chinese electric car conglomerate Geely has emerged as another threat, with sales of its EX5 electric SUV – which is the cheapest model in its class in Australia – clocking 188 sales in just its first month.

Chinese newcomer brand JAC has shed some light on just what makes Australia so appealing to China's army of new-car brands, suggesting a combination of conditions, customers and tough competition makes the country irresistible.

Is Ford worried about the economic fallout from the US Federal Government’s hard line on imported vehicle tariffs and other controversial policy changes?With the company priding itself as the ‘most American carmaker in the world’, is the threat of consumer retaliation against US vehicles keeping senior management up at night?According to Ford Motor Company Executive Chairman, William Clay Ford Jr., the family-run vehicle manufacturer is large enough and important enough to have the ear of the Trump Administration.“Well, first of all, we have the largest American footprint of any OEM (original equipment manufacturer),” he told journalists at Ford Australia’s 100 anniversary celebration in Melbourne earlier this month.“And so, you know, that puts us in pretty good shape, actually, relative to many others.“But I keep reminding our management team of this: we've been around 122 years. And in 122 years, around the world, we have gone through every kind of political regime, every kind of economic bit of turmoil… great depressions, recessions… and we've always come out of it in great shape.“It seems like, and I was just saying to my employees today – and you know, I'm not counting what (is going on) – I've been through nine major crises in my career, and each time it felt like it was existential, and each time we emerge from it and carry on and go to new heights.“I think this will take some adjusting to for sure, as I say that, you know, the fact that we have the largest American footprint, we employ the most Americans, we make the most vehicles in America, really, you know, puts us in pretty good shape.”That said, Ford’s most senior executive acknowledges that some deft diplomatic manoeuvrability would be prudent in today’s ever-shifting geopolitical climate.“We’re still working through all the implications of this, because, as you can imagine, this has tails well into our supply chain all around the world, and so there's still kind of a TBD (to be determined) for us on some of the finer points, but we're going to work very closely with the administration.“You know, the good news is we have a large voice in America, in an American industry. The administration listens to us, and we'll work with them as this gets clarified.”The Ford CEO’s reaction came the day after Tesla released data showing that its global sales for the first quarter of 2025 slid some 13 per cent year-on-year.This seems to support reports stating that consumers are recoiling from that brand due to its CEO Elon Musk’s political machinations in the US.In the first three months of this year in Australia, Tesla sales plummeted by 59.7 per cent year-on year, although the company’s best-seller – the Model Y – had been in runout leading up to that point, so supply may have been affected.According to data from S&P Global Mobility released in May last year, Ford is “the number one American automaker in terms of vehicles assembled, vehicles exported from America to other countries and hourly workers employed” – and that’s for the sixth year in succession.

Why this big American V8 is copping a last-second price-rise.

Chery has announced it will develop 39 new hybrid cars across its different product lines, consisting largely of plug-in hybrid and range-extender models.According to Autohome, the move is a part of a new three-pillar business strategy that was detailed by brand executives during a “Hybrid Night” press conference last week at Chery’s headquarters in Wuhu.The new approach will prioritise vertical integration, improved safety standards and open source technologies, the latter of which meaning Chery will make its new hybrid technologies available to other automakers. KGM SsangYong is already a signatory, with Chery platforms poised to underpin a new range of joint-developed hybrid SUVs.At least three new hybrid powertrains will be developed by Chery to accommodate different applications. That starts with the CDM/CEM powertrains, which will denote the systems fitted to mainstream passenger vehicles such as the Chery ‘Fulwin’ Tiggo Pro 8 and Tiggo Pro 9.It allows for one of three 1.5-litre turbo-petrol engine configurations paired with either a range-extender (REEV) or plug-in hybrid (PHEV) drivetrain. Chery claims the petrol engine will be able reach a thermal efficiency of 48 per cent, making it among the most efficient in the world.The brand’s more performance-oriented cars under its Exceed, Luxeed and iCar sub-brands, will carry CDM-S and CEM-S hybrid powertrains, which pair either a 1.5-litre or 2.0-litre turbo-petrol engine with PHEV, REEV or plugless hybrid drivetrain options.And finally, the off-road oriented Jetour sub-brand will carry CDM-O and CEM-E powertrains that pair either a 1.5-litre or 2.0-litre turbo-petrol engine with newly-developed dual electric motors and a brand-new off-road specific three-speed hybrid transmission.The powertrains will be made available on the plug-in hybrid Jetour G700, G900 and T1 models in China, and while Chery is yet to confirm the off-road sub-brand for Australia, it remains in with a strong chance as the brand gains a foothold in the Australian market.Last year, Chery sold 12,603 cars, an increase of 113 per cent on the previous year. Sales are looking even stronger in the first three months of 2025, with the brand already clocking 6105 sales, an increase of 216.6 per cent on the same period last year.The recent addition of Chery's self-described "premium" Jaecoo sub-brand will only build its momentum even further, while a hybrid version of the brand’s most popular car, the Chery Tiggo 4 small SUV, is expected to arrive later this year.It will be followed by plug-in hybrid versions of the Tiggo 7 and Tiggo 8, which will go head-to-head against medium SUV stalwarts in the Toyota RAV4, Ford Everest and Hyundai Santa Fe.

BYD has announced improved terms for its new-car warranty in Australia.

Volvo warns that "something has got to give" in Australia's new-car market, with too many brands now fighting for too few sales for all to survive.That's the word from Volvo Car Australia Managing Director Stephen Connor, with the senior executive also detailing how his brand will survive the new-marque onslaught."We've got 70-plus OEMs here, and we've probably got another 20 arriving on our shores in the next short period of time. It is crazy," he said."The market is, they reckon, 1.2 million this year. I personally think it's about one million, but let's go with the experts, and they're saying it's 1.2."So 1.2m (sales) with probably 90 OEMs – something has got to give."I think the people who will struggle are the people who are going to be fighting in that volume segment. And I think, good on the new entrants coming in. They're going to bring a new dynamic."Asked whether all 90 brands would still be in Australia in five years time, the executive replied "I don't think so"."I think there will be some consolidation, and this is only my personal view," he said, "I think some brands who have come in, the new ones, have gone, (saying) this is too hard and too difficult."His thoughts echo those of Kia, Toyota and other major players, all of whom suggest the new-car makeup in Australia is going to change, though Volvo is in a unique position, given several of the new players – Polestar, Geely, Zeekr and the soon-to-arrive Lynk & Co – are all part of its extended family .But Volvo says realistic expectations and a business model not contingent on extreme volume will ensure the marque survives in Australia."We're looking for marginal growth this year, which is okay. We've gathered production based on marginal growth," Mr Connor says."I think it's important for us to grow as a brand. But we don't need to grow by 20 per cent. Five per cent, two per cent – that's good enough for us as we go forward. Our production this year is based off about 9,500 units. And we're comfortable to achieve that."A changing product line-up will fuel that marginal increase, Mr Connor says, with some well-known models on the way out, replaced by vehicles the brand hopes will capture more sales."So S60 and V60, we say goodbye this year to those models. They were only about 300 cars a piece. There's a lot of time and energy spent just to sell 300 cars, and as you know, sedans are struggling in this marketplace," he says."We've got the EX90, which will be about 300 cars this year. We've got XC90, the new one. So that will be about 1100 units roughly. We'll get some extra growth from EX30 Cross Country. We have refreshed XC60, a big segment for us. It's normally about 3000 cars. Then later on this year we've got the ES90 as well, which will be small volumes again."But you see, we've consolidated the line-up. So that's where our growth will come from. Refreshed XC90, refreshed XC60. We've got obviously XC40, which is still a great seller for us as well, and then you've got EX30."

The days of five-year warranties being competitive for mainstream brands are behind us, let alone the three-year warranties some brands persist with.Pioneered by Kia’s seven-year warranty a decade ago, the move towards decade-long warranties continues with newcomer brands looking to make a name for themselves, while some brands look to keep customers with servicing-conditional extended warranties.But now that Kia’s seven-year warranty is no longer the industry leader - despite still being unlimited-kilometre where others aren’t - will the South Korean brand extend its warranty to remain keep up?Kia Australia CEO Damien Meredith told CarsGuide there are no plans to increase the once-leading seven-year warranty to match rival brands that offer a decade of warranty like MG, Mitsubishi and Nissan.None of those are unlimited-kilometre warranties, and the latter two are conditional to customers servicing their cars with the brands’ dealers. Kia’s seven-year warranty is both unlimited-kilometre and unconditional when it comes to servicing.While Kia’s warranty has by no means fallen behind the average, it’s been around for about a decade and the market has changed significantly in that time.“Over that period of time when we introduced the seven-year warranty, on the first of November, 2014, it was bought in for a lot of reasons but specifically it was to give people permission to look at our brand,” Meredith says.“It did a great job. In 2015, the number one reason for buying a Kia was the warranty.“The latest figures I saw, it’s not even top three, it’s fourth. So it’s changed, and it’s not as important to Kia purchasers as it was ten years ago.”Instead, the factors customers put above its warranty when buying a new car are brand or manufacturer, style, and driving performance.“It used to be an opener on the showroom floor, now it's more of a closer,” adds Kia Australia General Manager of Marketing Dean Norbiato.“As opposed to ‘we’ve got a seven-year warranty, look at us’, it’s now everything else. The brand, the quality, the trust in the brand, and then the seven-year warranty finishes it off.”Kia’s reaffirmed position on its seven-year warranty comes at the same time as reports emerge of Hyundai’s apparent plan to increase its warranty to eight years, up from its current five-year offer.An insider source told CarsGuide the brand is considering the move, which could feasibly be in response to sales not meeting expectations.If it goes ahead, it would leapfrog its sibling brand by a year. Furthermore, if it remains unlimited-kilometre and unconditional, it will be one of the strongest warranties in the industry.Honda currently offers an eight-year unlimited kilometre warranty, the only one to do so, making it the highest-duration warranty not limited by driving distance.GWM, Skoda and KGM SsangYong all offer seven-year unlimited kilometre warranties alongside Kia, while most of the industry offers five-year warranties. Many premium and European brands still offer three-year warranties.